I discussed the scope, proposed stops and expected start date of the Shinning Waters commuter train project in part 1. In this blog I will focus on the possible effects on real estate value, particularly in the rural areas such as Havelock & Norwood.
Overall I think this project will serve the community very well and be a source of increased revenue, jobs, tourism and add value to the communities as a whole.
However it also goes without saying that having a commuter train (that can go up to 90 KPH) going through your back yard will not be an added selling feature for certain individual homes.
As an example in Norwood where the tracks run in front of Mill pond, currently home owners along this strip have a beautiful view of the water and occasionally have a slow moving freight train run between their house and the water.
Unfortunately it is a proven fact properties within 100 meters of active train tracks suffer a loss of value. The closer the house, the greater the loss in value. Some markets have shown a 20% difference in value VS a similar house located a few blocks from the tracks.
If you live along these tracks and have been thinking about selling now may be the time, if you are a buyer and there are tracks near the home you are looking at; do some research.. Current train activity is not what it will be in 2014.
Kilpatrick, John A., Throupe, Ronald L., Carruthers, John I., & Krause (2007). The Impact of Transit Corridors on Residential Property Values Journal of Real Estate Research, 29 (3), 303-320
Poon, L. (1978). Railway Externalities and Residential Property Prices Land Economics, 54 (2) DOI: 10.2307/3146235
Portnov, Boris A., Genkin, Bella, & Barzilay, Boaz (2009). Investigating the Effect of Train Proximity on Apartment Prices: Haifa, Israel as a Case Study Journal of Real Estate Research, 31 (4)